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The Business Growth Fund (BGF) reports it has now invested more than £500 million in businesses across the UK.

BGF is an independent company backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered.

It was established in 2011 to provide capital to businesses with a turnover between £5 million and £100 million.

The fund was launched following talks between government and high street banks which had also produced the Project Merlin lending agreement in which banks had agreed to lend £190 billion to businesses.

Since its launch, BGF said it has now invested in nearly 100 companies”, spanning manufacturing, retail, technology and leisure.

The £500 million investment milestone has been reached following what was reported to be the most active quarter for the fund to date in the first three months of 2015, with £71 million invested.

Of the £500 million invested to date, BGF said £100 million has been invested in 16 Scottish-based businesses.

BGF works in a strategic partnership model, working alongside management as a minority investor.

Stephen Welton, chief executive of BGF said: “When BGF launched in 2011, smaller and mid-sized companies were largely overlooked by equity investors, access to long-term capital was scarce, and the perception was that demand was non-existent.

“That was completely wrong and we have seen dramatic change over the last three years.

“The £500 million that BGF has rapidly invested would not have been provided without us.

“That has driven not only investment, but created thousands more jobs in our portfolio companies and unlocked tens of millions of additional debt capacity.”

Simon Munro, BGF's Scottish regional director, said: “BGF has seen a huge surge in demand in Scotland - a clear indication of entrepreneurial drive and a supportive business environment.

“Businesses that we have already backed are growing fast, gaining market share and demonstrating that they are capable of competing on a national and international stage, given the right backing and support.

“Yet we know that there are many more companies out there – from a wide range of sectors – which can benefit from the type of support we provide.”